London Stock Exchange Group to launch GBP1 billion share buyback as it capitalizes on data push

By Louis Goss

The London Stock Exchange Group PLC (UK:LSEG) has vowed to buy back GBP1 billion ($1.24 billion) worth of its own shares from shareholders next year as the firm that owns Britain's centuries old stock market pushes ahead with plans to transform itself into an artificial intelligence driven data company.

Since its $27 billion acquisition of Refinitiv in February 2021, LSEG has worked to remodel itself into a data and analytics company, with a view to capitalizing on surging demand for information, driven by the shift towards algorithmic trading and the rise of ESG.

LSEG's Data & Analytics segment now accounts for the majority of the company's revenues, with the firm having previously focused on the London Stock Exchange as its money maker.

Now it aims to boost its data and analytics revenues even further, following its December 2022 deal with Microsoft (MSFT), through which it aims to use the tech giant's AI expertise to boost its own offerings, with a plan to launch new products as soon as the first half of 2024.

"In less than three years we have transformed our business, trebling the growth rate of the Refinitiv Data & Analytics businesses we acquired and beating our growth targets line by line. But the real opportunity still lies in front of us," LSEG CEO David Schwimmer said.

The company which owns the U.K.'s main stock market has now upped its medium-term guidance, in stating it expects to generate mid-to-high single digit revenue growth, and vowed to buy back GBP1 billion worth of its own shares from shareholders in 2024.

LSEG's push to transform itself from a capital markets business into a data and analytics business comes as the London Stock Exchange itself has suffered from a drop in trades and a lack of companies seeking to list on the U.K. stock market.

Daily trade volumes on the London Stock Exchange are currently down 38% compared to 2022, data from LSEG shows.

In the first half of 2023, just 18 companies had initial public offerings on the London Stock Exchange, in listings that generated GBP593 million, Ernst & Young data shows. For comparison, 26 companies had IPOs on London's stock market in the first half of 2022, raising GBP594 million.

-Louis Goss

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-17-23 0638ET

Copyright (c) 2023 Dow Jones & Company, Inc.